Foreign Exchange Market Commentary

Daily Forex Technicals | Written by HY Markets | Sep 23 08 05:34 GMT |

EUR/USD closed sharply higher on Monday and above the reaction high crossing as it extended last week's rally. The high-range close sets the stage for a steady to higher opening on Tuesday. Stochastics and the RSI remain bullish signalling that sideways to higher prices are possible near-term. If it extends this week's rally, the 50% retracement level of the July-September decline crossing is the next upside target. Closes below the 10-day moving average crossing are needed to confirm that a short-term top has been posted. USD/JPY closed sharply lower due to short covering on Monday as it consolidated some of last Friday's rally. The low-range close sets the stage for a steady to lower opening on Tuesday. Stochastics and the RSI are diverging and turning neutral to bullish signalling that a bottom might be in or is near. Closes above the 20-day moving average crossing are needed to confirm that a short-term bottom has been posted. If it extends the decline off August's high, May's low crossing is the next downside target. GBP/USD closed sharply higher against the U.S. Dollar on Monday as it extended this month's rally. The high-range close sets the stage for a steady to higher opening on Tuesday. Stochastics and the RSI remain bullish signalling that sideways to higher prices are possible near-term. If it extends this week's rally, the 50% retracement level of the July-September decline crossing is the next upside target. Closes below the 10-day moving average crossing would confirm that a short-term top has been posted. USD/CHF closed sharply lower on Monday and tested the 50% retracement level of the July-September rally crossing. The low-range close sets the stage for a steady to lower opening on Tuesday. Stochastics and the RSI remain bearish signalling that sideways to lower prices are possible near-term. If it extends this week's decline, the 62% retracement level of the July-September rally crossing is the next downside target. Closes above the 10-day moving average crossing would confirm that a short-term bottom has been posted. HY Markets http://www.hymarkets.com